An orthodontist uses a process called invisalign to straighten a patients teeth.
Sammy Dallal | Getty Images | Digital First Media | Getty Images
Shares of Align Technology, the company that makes Invisalign clear teeth aligners, plunged on Thursday on the back of a dire warning about China and weaker-than-expected results.
Align Technology CEO Joe Hogan said in a statement that second-quarter Invisalign shipments were lower than expected, “primarily due to a softness in China related to a tougher consumer environment.”
The company shipped 377,100 Invisalign cases last quarter. Wall Street expected Align to ship 382,900 cases, according to FactSet. Align shares dropped more than 20% in the premarket.
“Given the uncertainty in China, our outlook for the third quarter reflects a more cautious view for growth in the Asia Pacific region,” Hogan said. Align expects third-quarter earnings to range between $1.09 per share and $1.16. Analysts polled by FactSet expected a median guidance of $1.45 earnings per share.
On top of that, Align’s second-quarter earnings fell short of expectations. The company earned $1.33 per share, well below a Refinitiv estimate of $1.51.
Hogan’s warning and the company’s weaker-than-expected results come as China and the U.S. negotiate to end a trade war that’s been going on for more than a year. A U.S. delegation is scheduled to fly to China next week for further talks on the matter.
Hogan will be on CNBC’s “Mad Money” Thursday evening to give more details on the China slowdown.